College of Business, Hospitality and Tourism Studies School of Accounting ACC601 CORPORATE ACCOUNTING MAJOR ASSIGNMENT (20%) Trimester 3, 2012...

College of Business, Hospitality and Tourism StudiesSchool of AccountingACC601 CORPORATE ACCOUNTINGMAJOR ASSIGNMENT (20%)Trimester 3, 2012Instructions:•This is an individual assignment. •This assignment carries 20%towards your total coursework. •All assignments should be typed (Font type: Times New Roman, font size: 12 and alignment: justified) and with proper referencing.•Only original work is to be submitted. Copied assignments will get a zero mark.•Plagiarism is a serious issue. Any student found plagiarizing their work will be given zero marks and will be subject to disciplinary actions.•Late assignments will be penalized at a rate of 10% per day.•Due Date: Friday, 7th December, 2012.

QUESTION 1ACCOUNTING FOR LEASESRead the newspaper article by Leon Gettler called ‘Lion Nathan rethinks bricks and porter strategy’ and answer the questions.Lion Nathan rethinks bricks and porter strategyLeon GettlerThe Age, 29 January 2004, p. 3Lion Nathan has put its pubs operation under review, four years after embarking on an aggressive plan in which it spent $65 million on hotel assets to ratchet up its low share of the Victorian beer market.The brewer said yesterday that it was reviewing its ownership of 41pubs in Melbourne and Geelong after receiving expressions of interest. This is expected to involve various sale and leaseback options.Contracts for long – term supply arrangements are expected to be part of any deal. Lion Nathan is revisiting the pubs business after its rival, Foster’s, spun off its own hotels and gaming business, Australian Leisure and Hospitality.Lion Nathan’s pub-buying spree was at odds with its strategy of not owning or operating hotels, but the brewer wanted to make an exception in Victoria, the backyard of Foster’s. In June 2000, it had a 13% share of the Victorian beer market but by November 2003, Lion Nathan’s share had crept up to only 13.2%.Lion Nathan had shrewdly targeted the 18 to 25-year-old segment in Victoria, but the strategy has been criticized because of the difficulties of coming in as an outsider and using an exclusive retail network to drive market share from such a low base.In that time, Lion Nathan had also written down the value of its Victorian hotels.Yesterday, the group said the change did not indicate a reduction in its plans for Victoria but rather a switch in focus by increasing its investment across brands including Tooheys, Becks, Hahn, James Squire and XXXX.Analysts said yesterday that the news was in line with Lion Nathan overhauling its Victorian strategy, something which had been under way for 12 – 18 months.